Finance
Constellium SE (NYSE: CSTM) today reported results for the fourth quarter and full year ended December 31, 2021.
Fourth quarter 2021 highlights:
- Shipments of 385 thousand metric tons, up 3% compared to Q4 2020
- Revenue of €1.7 billion, up 37% compared to Q4 2020
- Net income of €7 million compared to net income of €26 million in Q4 2020
- Adjusted EBITDA of €147 million, up 33% compared to Q4 2020
- Cash from Operations of €118 million and Free Cash Flow of €14 million
- Redeemed $200 million of 5.875% Senior Notes due 2026 in November
Full year 2021 highlights:
- Shipments of 1.6 million metric tons, up 10% compared to 2020
- Revenue of €6.2 billion, up 26% compared to 2020
- Net income of €262 million compared to a net loss of €17 million in 2020
- Adjusted EBITDA of €581 million, up 25% compared to 2020
- Cash from Operations of €357 million and Free Cash Flow of €135 million
- Net debt / LTM Adjusted EBITDA of 3.4x at December 31, 2021
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered a strong finish to 2021, and I want to thank each of our 12,000 employees for their commitment and relentless focus on safety and serving our customers. 2021 was another year of challenges and uncertainties brought by the COVID-19 crisis, including inflationary pressures across the business, weakness in aerospace demand, semiconductor shortages in automotive and other supply chain issues. Despite these challenges, we achieved record Adjusted EBITDA of €581 million, including record results in both P&ARP and AS&I. We generated solid Free Cash Flow of €135 million and reduced our leverage to 3.4x.”
“Looking ahead to 2022, we expect demand to remain strong in our packaging and industrial markets. We are starting to see the beginnings of a recovery in aerospace demand and expect year over year growth in shipments in the coming quarters. In automotive, we expect demand to remain low to start the year as the semiconductor shortage persists and to improve in the second half of the year. We are expecting inflationary pressures to continue at an elevated level throughout 2022, though we are confident in our ability to offset most of the impact with improved pricing and our relentless focus on cost control,” Mr. Germain continued.
Mr. Germain concluded, "Based on our current outlook, we expect Adjusted EBITDA of €600 million to €620 million and Free Cash Flow in excess of €150 million in 2022. In April, we will hold our Analyst Day at our Muscle Shoals facility in Alabama, where we expect to update you on our businesses, detail our plans for the future, establish new long-term guidance and present our 2030 sustainability strategy.”
Forward Looking Statement
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations, including the length and magnitude of disruption resulting from the global COVID-19 pandemic; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.